Ontario businesses in 2026 face a mid-pack combined corporate tax rate, a single harmonized sales tax instead of two, and an Employer Health Tax most small employers never pay. RN Canada provides bookkeeping, T2 tax filing, HST compliance, payroll and EHT support, and fractional CFO advisory to Ontario founders and owner-managed businesses — delivered remotely from our Edmonton head office. We do not have an Ontario office, and we say so plainly.
Ontario's 2026 tax setup at a glance
Ontario's tax rules differ from Alberta's and BC's in several ways that shape how a company plans.
Corporate income tax. Ontario's general provincial rate is 11.5% in 2026. Combined with the federal 15% general rate, that is 26.5% on income above the small business limit — higher than Alberta's 23%, close to BC's 27%. On small-business income, Ontario is cutting its rate from 3.2% to 2.2% effective July 1, 2026 (Bill 12, the Cutting Taxes on Small Businesses Act, 2025), giving a combined small-business rate of 11.2% (9% federal plus 2.2% Ontario), down from 12.2%.
The small business limit gets more nuanced. Bill 12 also raises Ontario's own small business limit from $500,000 to $600,000 — but the federal limit stays at $500,000. On the $100,000 band between them, income gets Ontario's low 2.2% rate but the federal general rate of 15%, not the 9% small-business rate, because the federal limit is already used up — roughly 17.2% combined on that band. Model it with the corporate tax calculator; see the small business deduction limit guide for how federal/provincial limits interact.
No separate provincial return. Ontario corporate tax is administered by the CRA and filed with the federal T2 — unlike Alberta, which also requires a provincial AT1.
Sales tax is harmonized. Ontario charges 13% HST, one registration and one return, simpler than BC's separate 5% GST plus 7% PST. Registered businesses generally recover HST paid on inputs via input tax credits.
Employer Health Tax. Ontario's EHT exempts the first $1,000,000 of annual Ontario payroll for eligible employers, rising to a top rate of 1.95% above that. Employers over $5 million in annual Ontario payroll get no exemption. The threshold next adjusts for inflation on January 1, 2029. See our Ontario EHT guide.
Minimum wage. Ontario's general minimum wage rises from $17.60 to $17.95 on October 1, 2026 — worth building into hourly-staff budgets. Model total labour cost with the employer payroll cost calculator.
What RN Canada does for Ontario businesses
We cover the full finance stack, delivered entirely online:
- Bookkeeping and tax filing — month-end books, HST, payroll, and T2 corporate returns. See bookkeeping & tax filing.
- Part-time / fractional CFO — forecasting, financial modelling, financing readiness, and management reporting. See part-time CFO & management accountant.
- Reporting, valuation, internal audit, and performance management. See all services.
For Ontario specifics, read our Ontario corporate tax guide, the Ontario EHT guide, and the guide to incorporating a business in Ontario. If your business also touches Alberta or BC, see our Alberta vs. BC business tax comparison.
If your operations are centred on Toronto, see our dedicated Toronto page for municipal taxes that sit on top of the provincial rules above.
Who we serve in Ontario
Our Ontario clients are typically incorporated owner-managed businesses and founders past the start-up stage — roughly $500K to $20M in revenue — across professional corporations, tech and SaaS, retail and e-commerce, trades and construction, and newcomer-founded companies. The firm is led by founder Ozgur Duymaz, Ph.D. in accounting and finance, CPA (Canada), ACCA (UK), and CMA (US), bringing depth in Canadian tax, IFRS, governance, and valuation to every engagement regardless of location.
How we work with Ontario (honest note on location)
To be clear: RN Canada does not have an Ontario office or address. We serve Ontario businesses remotely from our Edmonton head office (10804 181 St NW #201, T5S 1K4; +1 (236) 514-5541). Engagements run through cloud accounting software and scheduled video meetings — Canadian corporate tax, HST, and payroll rules are federally documented, so a remote Edmonton-based engagement covers Ontario compliance just as thoroughly as a local one.
Ready to set up bookkeeping, corporate tax, HST, or fractional CFO support for your Ontario business? Contact RN Canada.
Frequently asked questions
Does RN Canada have an office in Ontario? No. RN Canada does not have an Ontario office. We serve Ontario businesses remotely from our Edmonton head office, using cloud accounting software and video meetings. Ontario's T2 filing, HST, and EHT rules apply the same way regardless of where your accountant sits.
What is Ontario's corporate tax rate in 2026? Ontario's general corporate rate is 11.5%, combined with the federal 15% general rate for 26.5% above the small business limit. On small-business income, Ontario's rate falls from 3.2% to 2.2% on July 1, 2026, giving a combined small-business rate of 11.2% (9% federal plus 2.2% Ontario) once in effect.
Does Ontario have its own corporate tax return like Alberta's AT1? No. Unlike Alberta's separate AT1, Ontario corporate income tax is administered by the CRA and reported on the single federal T2 return. There is no separate Ontario corporate filing.
What is the Ontario Employer Health Tax? The EHT exempts the first $1,000,000 of annual Ontario payroll for eligible employers, with rates up to a top of 1.95% above that. Employers with over $5 million in annual Ontario payroll get no exemption at all. The threshold next adjusts for inflation on January 1, 2029.
Is HST the same as GST plus PST in Ontario? Not structurally. Ontario charges one harmonized sales tax (HST) of 13% — one registration, one return — instead of BC's two separate taxes. Registered Ontario businesses generally recover the HST they pay on business inputs through input tax credits.
Frequently asked questions
No. RN Canada does not have an Ontario office. We serve Ontario businesses remotely from our Edmonton head office, using cloud accounting software and video meetings. Ontario's T2 filing, HST, and EHT rules apply the same way regardless of where your accountant sits.
Ontario's general corporate rate is 11.5%, combined with the federal 15% general rate for 26.5% above the small business limit. On small-business income, Ontario's rate falls from 3.2% to 2.2% on July 1, 2026, giving a combined small-business rate of 11.2% (9% federal plus 2.2% Ontario) once in effect.
No. Unlike Alberta's separate AT1, Ontario corporate income tax is administered by the CRA and reported on the single federal T2 return. There is no separate Ontario corporate filing.
The EHT exempts the first $1,000,000 of annual Ontario payroll for eligible employers, with rates up to a top of 1.95% above that. Employers with over $5 million in annual Ontario payroll get no exemption at all. The threshold next adjusts for inflation on January 1, 2029.
Not structurally. Ontario charges one harmonized sales tax (HST) of 13% — one registration, one return — instead of BC's two separate taxes. Registered Ontario businesses generally recover the HST they pay on business inputs through input tax credits.